HARRY HUGHES, Governor

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project. The allocation and use of State funds under this
Act shall be governed by and subject to the following
stipulations and limitations:

(i) State funds may be used only for the
construction, acquisition, renovation, and/or equipping of
public and other nonprofit facilities and for the purpose of
reports, plans, and specifications in connection therewith,
and for the purpose of site improvements, surveys, and
programs in connection therewith.

(ii) Any federal grant which may be
available for this purpose shall be applied first to the
cost of construction, acquisition, renovation, and/or
equipping of each community mental health center component,
addiction facility, mental retardation facility, or
developmental disabilities facility. State grants shall
amount to up to 50 percent of the eligible cost remaining
after the federal grant has been applied. For those
projects designated under federal regulation, State plans,
and regulations provided for by this Act as eligible for
poverty area funding, State grants shall amount to up to 75
percent of the eligible cost remaining after the federal
grant has been applied.

(iii) The amount of the State grant to be
made for any facility shall be determined after due
consideration of all pending eligible applicants, the total
of unallocated State funds available at the time the
application is received, and such priorities of area need as
may have been established by the State Department of Health
and Mental Hygiene.

(iv) If, at any time within 15 years after
completion of construction, a facility with respect to which
funds have been paid under the provisions of this Act:

1.  Is sold or transferred to any
person, agency, or organization which would not itself
qualify as an applicant under the terms of this Act, or
which is not approved as a transferee by the Secretary of
Health and Mental Hygiene, or

2.  Ceases to be a public or
nonprofit facility, as defined in this Act, then the State
shall be entitled to recover from either the transferor of
transferee or, in the case of an institution which has
ceased to be a public or nonprofit facility, from the owner,
an amount bearing the same ratio to the then value (as
determined by agreement of the State and such transferor,
transferee, or owner, or by action brought in a court of
competent jurisdiction) of so much of the institution as
constituted an approved project, as the amount of the State
participation bore to the cost of the construction under
that project. A statement notice of this right of recovery
shall be recorded in the land records of the political
subdivision in which the facility is located prior to the